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The tax imposed by this Chapter shall be levied, collected and paid with respect to all qualifying wages, including sick and vacation pay, bonuses, commissions, incentive payments, settlements, stock options, grievance pay, severance pay, any pay as part of an employee buyout or wage continuation plan and other compensation paid by an employer or employers, compensation for personal services, other compensation, and other taxable income earned, net profits of businesses, professions or other activities subject to the tax, earned on and after January 1, 1966. (Ord. 58-2012. Passed 12-6-12.)
(a) Date and Requirement for Filing:
(1) On or before April 15th of each year, every person or taxpayer who engages in business or other activity in the Municipality, or whose taxable income is subject to the provisions of Section 181.03 of this Municipal Income Tax Code shall, except as provided in this Chapter, make and file with the Tax Commissioner a Municipal tax return on a form prescribed by and acceptable to the Tax Commissioner, whether or not a tax is due.
(2) On or before April 15th of each year, every resident, who reached the age eighteen (18) years of age or older during the taxable year, subject to the provisions of Section 181.03, of this Municipal Income Tax Code shall, except as provided in this Chapter, make and file with the Tax Commissioner a Municipal tax return on a form prescribed by and acceptable to the Tax Commissioner, whether or not a tax is due.
(3) When the return is made for a fiscal year or other period different from the calendar year, the return shall be filed on or before the fifteenth (15th) day of the fourth (4th) month following the end of such fiscal year or period.
(4) The Tax Commissioner is authorized to provide that the return of an employer or employers, showing the amount of Municipal tax deducted by said employer or employers from the qualifying wages, including sick and vacation pay, bonuses, commissions, incentive payments, settlements, stock options, grievance pay, severance pay, any pay as part of an employee buyout or wage continuation plan and other compensation, and other taxable income of a nonresident employee, and paid by him or them to the Tax Commissioner may be accepted as the return required of a nonresident employee whose sole income, subject to tax under this chapter, is such, qualifying wages, commissions, other compensation, and other taxable income.
(5) The return shall be accompanied by payment of any taxes due.
(6) Every person subject to the provisions of Section 181.03 of the Tax Ordinance shall file a return setting forth the aggregate amount of qualifying wages, commissions, other compensation, other taxable income, net profits from business or other activities, including the rental from the use of real and personal property, distributive shares from partnerships and other income taxable under this Chapter, received for the period covered by the return and such other pertinent facts and information in detail as the Tax Commissioner may require.
(7) An employer shall withhold the tax on the full amount of any advances made to an employee on account of commissions.
(8) An employee who is permitted to deduct business expenses from qualifying wages, commissions, other compensation, and other taxable income, must conform to federal income tax regulations and shall file a return in order to claim such deductions even though all or part of such qualifying wages, commissions, other compensation and other taxable income are subject to withholding.
(9) Any taxpayer who received taxable income, not subject to withholding under this Chapter, must file a return.
(10) Any taxpayer having income, wages, or other compensation for which a return must be filed, and also having net profits from a business, is required to file only one return.
(11) All tax imposed on the S Corporation, partnership or association as an entity whether resident or non-resident and a return is required disclosing the net profits apportioned to the Municipality and the tax paid. However, any resident partner or shareholder of an unincorporated entity is required to make a return and pay the tax in accordance with this Chapter.
(12) Executors and administrators are required to file return and are liable for the payment of any taxes due by a deceased from an estate of said deceased. Trustees are required to file returns on the trusts and are required to give name and address of the beneficiaries, even though the later individually pays the tax.
(b) Joint Returns:
(1) A husband and wife may file either separate returns or a joint return for municipal purposes, even though one of the spouses has neither taxable income nor deductions included on the municipal return, regardless of whether their federal and state returns were filed separately or jointly. If a joint municipal return is made, the tax shall be computed on the aggregate taxable income and the liability with respect to the tax shall be joint and several.
(2) A husband and wife may file a joint return either when engaged in the same or separate businesses, but may not deduct business losses of either from compensation paid by an employer.
(c) Returns, Information Required and Reconciliation with Federal Returns:
(1) The return shall be filed with the Tax Commissioner on a form or forms furnished by or obtainable upon request from the Tax Commissioner, or on a generic form, and, if the taxpayer or return preparer filing the generic form otherwise complies with this Chapter. The return shall set forth:
A. The aggregate amounts of qualifying wages, including sick and vacation pay, bonuses, commissions, incentive payments, settlements, stock options, grievance pay, severance pay, any pay as part of an employee buyout or wage continuation plan and other compensation received, allocated, apportioned or set aside, other income defined by statute as taxable and gross income from any business, profession or other activity, less allowable expenses incurred in the acquisition of such gross income, earned during the preceding year and subject to said tax; and,
B. The amount of the tax imposed by this Chapter on such earnings and profits; and,
C. Such other pertinent statements, information returns, copies of federal or state tax returns and/or schedules, or other information as the Tax Commissioner may require, including a statement that the figures used in the return are the figures used for federal income tax adjusted to set forth only such income as is taxable under the provisions of this Chapter; and,
D. For all net-profits returns filed, there shall be set forth on the return, the aggregate amount of salaries, wages, bonuses, incentive payments, commission, fees and other compensation subject to the tax earned from each employer, taxable net profits, and other pertinent information as the Tax Commissioner may require.
(2) The Tax Commissioner shall accept a generic form of any return, report, or document required to be filed if the generic form, once completed and filed, contains all of the information required to be submitted with the Municipality's prescribed returns, reports or documents, and if the taxpayer or return preparer filing the generic form otherwise complies with this Chapter and the Rules and Regulations.
(3) Where figures of total income, total deductions, and net profits are included, as shown by a federal return, any items of income which are not subject to Municipal tax and unallowable expenses shall be eliminated in determining net income subject to Municipal tax. The fact that any taxpayer is not required to file a federal tax return does not relieve him from filing a Municipal tax return.
(4) If a change in federal income tax liability, made by the Internal Revenue Service, or by a judicial decision, results in an additional amount of tax payable to the Municipality, a report of such change shall be filed by the taxpayer within three (3) months after receipt of the final notice from the Internal Revenue Service or final court decision.
(5) If a change in federal income tax liability results in a reduction of taxes owed and paid to the Municipality, a claim for refund shall be filed with the Tax Commissioner as prescribed in Section 181.11 of this Chapter.
(d) Extensions:
(1) Any taxpayer that has requested an extension for filing a federal income tax return may request an extension for the filing of a municipal income tax return by filing a copy of the taxpayer's federal extension request with the St. Bernard Tax Department.
(2) Any taxpayer not required to file a federal income tax return may request an extension for filing a St. Bernard Income Tax Return in writing.
(3) The request for extension must be filed on or before the original due date for the annual return.
(4) If the request is granted, the extended due date of the municipal income tax return shall be the last day of the month following the month to which the due date of the federal income tax return has been extended.
(5) The Tax Commissioner may deny a taxpayer's request for extension if the taxpayer:
A. Fails to timely file the request; or
B. Fails to file a copy of the federal extension request (if applicable); or
C. Owes the Municipality any delinquent income tax or any penalty, interest or other charge for the late payment or non-payment of income tax; or
D. Has failed to file any required income tax return, report or other related document for a prior tax period.
(6) The granting of an extension for filing a municipal income tax return does not extend the due date as provided in this Section for payment of the tax; hence penalty and interest may apply to any unpaid tax during the period of extension at the rate set out by Section 181.10. No penalty shall be assessed in those cases in which the return is filed and the final tax paid within the extension period, provided all other filing and payment requirements of this Chapter have been met.
(7) Any extension by the Tax Commissioner shall be granted upon the condition that declaration filing and payment requirements have been fulfilled; however, if, upon further examination it then becomes evident that declaration filing and payment requirements have not been fulfilled, penalty and interest may be assessed in full and in the same manner as though no extension had been granted.
(e) Payment with Returns:
(1) The taxpayer filing a tax return shall, at the time of the filing, pay to the Tax Commissioner the amount of taxes shown as due. However, credit shall be allowed for:
A. Any portion of the tax so due shall have been deducted at the source, pursuant to the provisions of Section 181.06 hereof; and
B. Any portion of said tax which shall have been paid by the taxpayer, pursuant to the provisions of Section 181.07 hereof; and
Such credits shall be deducted from the amount shown to be due and only the balance, if any, shall be due and payable at the time of filing the return.
(2) Subject to the limitations contained in Section 181.05 of this Chapter, any taxpayer who has overpaid the amount of tax to which the Municipality is entitled under the provisions of this Chapter, may have such overpayment applied against any subsequent liability or, at his election indicated on the return, such overpayment (or part thereof) shall be refunded.
(3) Taxes due or refunds of less than five dollars ($5.00) shall not be collected or refunded.
(f) Amended Returns:
(1) Where necessary, an amended return shall be filed in order to report additional income and pay any additional tax due, or claim a refund of tax overpaid, subject to the requirements and/or limitations contained in Sections 181.11 and 181.15 of this Chapter. The Tax Commissioner shall provide by regulation the format in which such amended return shall be filed. A taxpayer may not change the method of accounting or apportionment of net profits after the due date for filing the original return.
(2) Within three (3) months from the final determination of any federal tax liability affecting the taxpayer's St. Bernard tax liability, such taxpayer shall make and file an amended St. Bernard return showing income subject to the Municipality tax based upon such final determination of federal tax liability, and pay any additional tax shown due or make claim for refund of any overpayment.
(g) Information Returns:
(1) Information returns, schedules and statements required to support tax returns which are incomplete without such information shall be filed within the time limits set forth for the filing of the tax returns.
(2) Failure to file such information returns, schedules and statements shall be a violation of this Chapter.
(3) The taxpayer shall have ten (10) days after notification by the Tax Commissioner, or his authorized representative, to file the items required by this paragraph.
(Ord. 58-2012. Passed 12-6-12.)
(a) Duty of Withholding and Payment of Tax Withheld by Employer:
(1) It is the duty of each employer within, or doing business within the Municipality who employs one or more persons, whether as an employee, officer, director or otherwise, on a salary, wage, commission or other personal service compensation basis shall deduct, when such salary, wage, commission or other compensation is paid, allocated, apportioned or set aside, the tax at the rate provided in Section 181.03 hereof on those qualifying wages, including sick and vacation pay, bonuses, commissions, incentive payments, settlements, stock options, grievance pay, severance pay, any pay as part of an employee buyout or wage continuation plan or other compensation due by such employer to such employee and shall, on or before the fifteenth (15th) day of the month following such withholding, make a return and pay to the Tax Commissioner the amount of taxes so deducted.
The return shall be on a form or forms prescribed by or acceptable to the Tax Commissioner and shall be subject to this Chapter and any Rules and Regulations prescribed by the Tax Commissioner.
(2) Effective January 1, 2006, employers shall make the payment of withheld taxes to the Tax Commissioner by electronic funds transfer. The Tax Commissioner shall adopt rules governing the payment of withheld taxes by electronic funds transfer as required by this Chapter. The rules shall govern the modes of electronic funds transfer and under what circumstances each mode is acceptable, the content and format of electronic funds transfer, the coordination of payment by electronic funds transfer and filing of associated tax reports and returns, and any other matter that facilitates payment by electronic funds transfer.
(3) Upon written request of a taxpayer, the Tax Commissioner may implement means of acknowledging receipt of payments made by electronic funds transfer and may adopt rules governing acknowledgments. The taxpayer requesting acknowledgment shall pay the cost of acknowledging receipt of electronic remittances. Such employer shall be liable for the payment of the tax required to be deducted and withheld, whether or not such taxes have in fact been withheld. Nothing in this section prohibits an employer from withholding tax on a basis greater than qualifying wages.
(4) The Tax Commissioner shall have the authority to grant to employers with three or less resident employees, permission for said employees to file individually.
(5) The tax shall be deducted by the employer from:
A. The gross amount of all qualifying wages, salaries, including sick and vacation pay, bonuses, commissions, incentive payments, settlements, stock options, grievance pay, severance pay, any pay as part of an employee buyout or wage continuation plan, fees, commissions or other forms of compensation allocated, set aside or paid to residents of the Municipality, regardless of the place where the services are rendered; and
B. The gross amount of all qualifying wages, salaries, including sick and vacation pay, bonuses, commissions, incentive payments, settlements, stock options, grievance pay, severance pay, any pay as part of an employee buyout or wage continuation plan, fees, commissions or other forms of compensation allocated, set aside or paid non-residents for services rendered, work performed or other activities engaged in within the Municipality.
C. An employer is liable for the payment of the tax required to be deducted and with held, whether or not such tax in fact has been withheld.
(6) All employers within or doing business within the Municipality are required to make the collections and deductions specified in this section, regardless of the fact that the services on account of which any particular deduction is required, as to residents of the Municipality, were performed outside the Municipality.
(7) Employers who do not maintain a permanent office or place of business in the Municipality, but who are subject to tax on net profits attributable to the Municipality under the method of the business apportionment percentage formula provided for in this Chapter, are considered to be employers within the Municipality and subject to the requirements of withholding.
(8) The mere fact that the tax is not withheld will not relieve the employee of the responsibility of filing a return and paying the tax on the compensation paid. If the employer has withheld the tax and failed to pay the tax withheld to the Tax Commissioner, the employee is not liable for the tax so withheld.
(9) Commissions and fees paid to professionals, brokers and others who are independent contractors, and not employees of the payor, are not subject to withholding or collection of the tax at the source. Such taxpayers must in all instances file a declaration and return and pay the tax pursuant to the provisions of this Chapter.
(10) Where a non-resident receives compensation for personal services rendered or performed partly within and partly without the Municipality, the withholding employer shall deduct, withhold and remit the tax on that portion of the compensation which is earned within the Municipality in accordance with the following rules of apportionment:
A. If an employer is located within the Municipality, all non-resident employees who report to the Municipal location are taxable to the Municipality unless the employer is withholding tax for other taxing municipalities where the employee's work is performed.
B. If the non-resident is a salesperson, agent or other employee whose compensation depends directly on the volume of business transacted or chiefly effected by him, the deducting and withholding shall attach to the portion of the entire compensation which the volume of business transacted or chiefly effected by the employee within the Municipality bears the total volume of business transacted by him within and outside the Municipality.
C. The deducting and withholding of personal service compensation of other non-resident employees, including officers of corporations, shall attach to the proportion of the personal service compensation of such employee which the total number of his working hours within the Municipality is of the total number of working hours.
D. The fact that non-resident employees are subject to call at any time does not permit the apportionment of pay for time worked within the Municipality on a seven-day per week basis. The percentage of time worked in the Municipality will be computed on the basis of a forty-hour week unless the employer notifies the Tax Commissioner that a greater or less number of hours are worked.
1. The determination of tax liability of non-residents working in and out of the corporate limits is to be computed on the formula of the total number of days worked in the municipality divided by the total number of days worked during the year, and the resulting percentage applied to the total annual income from wages including sick leave and vacation pay. Where no record can be substantiated of the number of days worked, the figure 260 is to be used as the total number of days worked.
E. Wages of itinerant ministers, pastors, or preachers are not subject to withholding.
F. Wage continuation plans paid by the employer or third party agent on behalf of the employer for purpose of health, recuperation or other reward are deemed to have the same tax situs as the primary job assignment or job location of the employee and are taxable on the same ratio as the normal earnings of such employee for this primary job assignment.
(11) An employer shall withhold the tax on the full amount of any advances made to an employee on account of commissions.
(12) An employer required to withhold the tax on compensation paid to an employee shall, in determining the amount on which the tax is to be withheld, ignore any amount allowed and paid to the employee for expenses necessarily and actually incurred by the employee in the actual performance of his services, provided such expenses are incurred in earning compensation, including commissions, and are not deducted as a business expense by the employee under this Chapter.
(13) An employer whose records show that an employee is a non-resident of the Municipality and has no knowledge to the contrary, shall be relieved of the responsibility of withholding the tax on personal service compensation paid to such employee for services rendered or work done outside the Municipality by such employee, provided, however, that such employer must withhold the tax on all personal service compensation paid such employee after the Tax Commissioner notifies said employer in writing that such employee is a resident of the Municipality. All employees are required to notify the employer of any change of residence and the date thereof.
(14) An employer shall not be required to withhold the St. Bernard tax from the qualifying wages earned by a resident the Municipality for work done or services performed in another municipality which imposes a tax upon such qualifying wages of such St. Bernard resident if such employer withholds the tax on such resident's qualifying wages for such other municipality. Where such municipal tax is for a smaller amount than the tax imposed by this Chapter, the employer shall furnish the Commissioner with a list of St. Bernard resident employees from whom such lesser tax is withheld, and the employer shall withhold and remit the difference to the Municipality.
(15) The Tax Commissioner shall have authority to enter into agreement with other taxing municipalities permitting an employer to withhold the entire tax on the wages of a floater either for the taxing municipality in which the employer has his principal place of business or the taxing municipality in which the employee resides.
(b) An employer is not required to make any withholding with respect to an individual's disqualifying disposition of an incentive stock option if, at the time of the disqualifying disposition, the individual is not an employee of the corporation with respect to whose stock the option has been issued.
(c) (1) An employee is not relieved from liability for a tax by the failure of the employer to withhold the tax as required by a municipal corporation or by the employer's exemption from the requirement to withhold the tax.
(2) The failure of an employer to remit to the municipal corporation the tax withheld relieves the employee from liability for that tax unless the employee colluded with the employer in connection with the failure to remit the tax withheld.
(d) So long as the taxes withheld by an employer for the Municipality during the measurement period are less than two hundred dollars ($200.00) per month, payments shall be made quarterly on or before the day of the month following the end of each quarter, subject to the approval of the Tax Commissioner.
The Tax Commissioner may grant an exemption to an employer from the duty to make payment of withheld taxes by electronic funds transfer upon application for such exemption by the employer and the employer's demonstration to the Tax Commissioner that the requirement to make payment of withheld taxes by electronic funds transfer will impose a hardship upon the employer.
The Tax Commissioner may revoke either approval granted in this section whenever the Tax Commissioner has reason to believe that the conditions for granting such authorization have changed, were judged incorrectly, were not met, or when it is in the best interest of the Municipality to do so. Notice of withdrawal shall be made in writing and, in such case; the employer must begin to file in accordance with this Section.
(e) Frequency of Payments: Where taxes withheld equal or exceed two hundred dollars ($200.00) per month, payments will be made monthly by the 15th day of the month following the end of each month. All other employers will remit quarterly the amounts withheld.
(f) Personal Liability for Collection and Payment of Tax:
(1) Any person who is required to withhold tax from salaries and wages shall pay all such tax to the Municipality in accordance with the provisions of this Section. In the event taxes withheld from employees are not paid to the Municipality in accordance with the provisions of this section, all officers, members, managers, employees and trustees having control or supervision of, or charged with the responsibility of filing the return and making payment, are jointly and severally personally liable for the tax not returned or paid to the Municipality, as well as any related interest and penalties, and are also liable under the provisions of Section 181.12 of this Chapter.
(2) The dissolution, termination or bankruptcy of a corporation, limited liability company or business trust does not discharge an officer's, member's, manager's, employee's or trustee's liability for a failure of the corporation, limited liability company or business trust to file returns or pay said taxes.
(g) Withholding Return; List of Employees:
(1) Each employer shall file a withholding tax reconciliation showing the sum total of all compensation paid all employees, the portion of which, (if any) was not subject to withholding along with an explanation for same, and the portion of which was subject to withholding, together with the amount of such withholdings remitted. Such return shall include, Form W-2 for each employee or list of employees containing W-2 information concerning each employee from whom the municipal tax was withheld, showing the name, address, zip code and social security number of each such employee, the total amount of compensation paid during the year, and the amount of municipal tax withheld.
If the total tax withheld from any employee included tax withheld and remitted to another municipality, the amount of same shall be separately shown on the return of information to the Municipality concerning each employee.
The withholding tax reconciliation, Form W-3, shall be filed by each employer on or before February 28th following the end of such calendar year.
(2) If more than the amount of tax required to be deducted by this Chapter is withheld from the employee's pay, the excess shall be refunded by the employer to the employee. If less than the amount of tax required to be deducted is deducted and withheld by the employer in any pay period or pay periods, the deficiency shall be deducted in subsequent pay periods.
(h) Form 1099 Reporting:
(1) In addition to the wage reporting requirements of this section, any person required by the Internal Revenue Service to report on Form 1099-Misc. payments to individuals not treated as employees for services performed, shall also report such payments to the Municipality when the services were performed in the Municipality. The information may be submitted on a listing, and shall include the name, address and social security number (or federal identification number), and the amount of the payments made. Federal form(s) 1099 may be submitted in lieu of such listing. The information shall be filed annually on or before February 28th following the end of such calendar year.
(i) Employer Deemed Trustee:
(1) Every employer, in collecting and holding the tax required to be withheld under this Chapter, is deemed to be a trustee for the benefit of the Municipality and the funds so collected by such withholding are deemed to be trust funds, until the funds are paid to the Municipality.
(2) Every such employer required to deduct and withhold the tax at the source is liable directly to the Municipality for payment of such tax whether actually collected from such employee or not.
(j) Domestic Servants: No person shall be required to withhold the tax on the qualifying wages, commissions, other compensation, and other taxable income paid domestic servants employed exclusively in or about such person's residence. However, such domestic servants shall be responsible for filing and paying their own returns and taxes.
(k) Fractional Parts of a Cent: In deducting and withholding the tax at the source and in payment of any tax due under this Chapter, a fractional part of a cent shall be disregarded unless it amounts to one-half (1/2¢) cent or more in which case it shall be increased to one cent (1¢).
(l) Winnings. Any business, profession or other enterprise located in St. Bernard which sponsors, creates, or allows play, gaming, wagering, sweepstakes, or games of chance or activities which result in winnings, as defined in this Chapter, and the winnings are an amount for which reporting to the internal revenue service of the amount is required by section 6041 of the Internal Revenue Code, as amended, the business, profession or enterprise operating such activity shall deduct and withhold municipal income tax from the person's winnings at the rate of the tax imposed by this Chapter. Amounts withheld shall be remitted to the St. Bernard Tax Department within 30 days.
(1) The requirements in this section requiring the immediate withholding and remittance of taxes to the St. Bernard Tax Department shall not apply to any non-profit, religious, charitable, or educational organizations that operate a fund raising raffle, game of chance, or sweepstakes.
(2) Each such business, profession or other enterprise or activity shall make and file a yearly information return by February 28th on a form furnished by the St. Bernard Tax Department, detailing the amount of tax deducted from a person's winnings and prize awards and paid to the St. Bernard Tax Department in accordance with this Chapter.
(Ord. 02-2014. Passed 1-2-14.)
(a) Requirement for Filing:
(1) Every person who anticipates any taxable income which is not subject to Section 181.06 hereof, or who engages in any business, profession, enterprise or activity resulting in income subject to the tax imposed by Section 181.03(a) in this Chapter, shall file a declaration setting forth such estimated income or the estimated profit or loss from such business activity, together with the estimated tax due thereon, if any. Provided, however, if a person's income is wholly from qualifying wages from which the tax will be withheld and remitted to this Municipality in accordance with Sections 181.06, 181.03(a), and 181.15 of this Chapter, such person need not file a declaration.
(2) A taxpayer's final return for the preceding year may be used as the basis for computing his declaration of estimated tax for the current year. In the event a taxpayer has not previously been required to file a return, a declaration of estimated tax on anticipated income shall be filed in good faith.
(b) Dates for Filing:
(1) Such declaration shall be filed on or before April 15th of each year during the life of this Chapter, or on or before the fifteenth (15th) day of the fourth (4th) month following the date the taxpayer becomes subject to tax for the first time.
(2) Those taxpayers having a fiscal year or period differing from the calendar year shall file a declaration on or before the fifteenth (15th) day of the fourth (4th) month following the start of each fiscal year or period.
(c) Forms -- Credit for Tax Withheld or Paid Another Community:
(1) Such declaration shall be filed upon a form furnished by or obtainable from the Tax Commissioner, or on an acceptable generic form, and credit shall be taken for the municipal tax to be withheld from any portion of such income. In accordance with the provisions of Section 181.07(c) and 181.15 hereof, a credit may be taken for tax to be withheld and remitted to another taxing municipality.
(2) The original declaration (or any subsequent amendment) may be increased or decreased on or before any subsequent quarterly payment date as provided for in this section.
(3) For taxpayers who are individuals, such declaration of estimated tax to be paid the Municipality shall be accompanied by a payment of at least twenty-two and one-half percent (22.5%) of the estimated annual tax, and at least a similar amount shall be paid on or before the last day of the seventh (7th), tenth (10th) and thirteenth (13th) months after the beginning of the taxable year.
(4) For taxpayers that are not individuals, such declaration of estimated tax to be paid the Municipality shall be accompanied by a payment of at least twenty-two and one-half percent (22.5%) of the estimated annual tax, and at least a similar amount shall be paid on or before the fifteenth (15th) day of the sixth (6th), ninth (9th) and twelfth (12th) months after the beginning of the taxable year.
(5) The mere submission of a declaration estimating a tax liability shall not constitute filing unless accompanied by the required payment.
(6) An entity (individual, corporate or association) may pay 100% of the prior year's tax in four equal installments in the current year and avoid any underpayment of estimated tax penalty.
(d) Amended Declaration:
(1) A declaration may be amended at any time, provided, however, that in the event an amended declaration has been filed, the unpaid balance shown due thereon shall be paid in equal installments on or before the remaining payment dates.
(2) An amended declaration must be filed on or before the last day of the month following the close of the taxpayer's tax year, if it appears that the original declaration made for such fiscal year underestimated the taxpayer's income by 10% or more. At such time a payment which, together with prior payments is sufficient to pay taxpayer's entire estimated liability, shall be made. If upon the filing of the return required by Section 181.05 of this Chapter it appears that the taxpayer did not pay 90% of his tax liability, as shown on said return, on or before the last day of the month following the close of the tax year, the difference between 90% of said taxpayer's tax liability and the amount of estimated tax he actually paid on or before said date shall be subject to the interest and penalty provisions of Section 181.10 of this Chapter.
(3) In the event an amended declaration has been filed the unpaid balance shown due thereon shall be paid in equal installments over the remaining payment dates.
(e) Annual Return Required:
(1) On or before the fifteenth (15th) day of the fourth (4th) month following the end of the calendar or fiscal year for which such declaration or amended declaration was filed, an annual return shall be filed and any balance which may be due the Municipality shall be paid with the return in accordance with the provisions of Section 181.05 of this Chapter.
(Ord. 58-2012. Passed 12-6-12.)
(a) Collection of Tax and Retention of Records:
(1) It shall be the duty of the Tax Commissioner to collect and receive the tax imposed by this Chapter in the manner prescribed herein, and to keep an accurate record thereof, and to report all monies so received.
(2) It shall be the duty of the Tax Commissioner to enforce payment of all earned income taxes owing the Municipality, to keep accurate records for a minimum of six (6) years, showing the amount due from each taxpayer required to file a declaration or make any return, including a return of taxes withheld, and to show the dates and amounts of payments thereof.
(b) Enforcement Provisions:
(1) The Tax Commissioner, and any duly authorized Deputy or Agent, is charged with the administration and enforcement of the provisions of this Chapter, and is empowered, subject to the approval of the Board of Review, to adopt and promulgate and to enforce rules and regulations relating to any matter or thing pertaining to the collection of taxes, and the administration, interpretation, and enforcement of the provisions of this Chapter.
(2) The Tax Commissioner has the authority for the re-examination, correction, or adjustment of any return submitted, when a correction or adjustment is necessary to accomplish the intention of this Chapter.
(3) Any taxpayer or employer desiring a special ruling on any matter pertaining to this Chapter or the Rules and Regulations, should submit to the Tax Commissioner in writing all the facts pertinent to the matter on which the ruling is sought.
(4) This Chapter along with any Rules and Regulations, together with all amendments and supplements and all changes, will be on file at the office of the Tax Commissioner and will be open to public inspection.
(5) The Tax Commissioner is authorized to arrange for the payment of unpaid taxes, interest and penalties on a schedule of installment payments, when the taxpayer has proved to the Tax Commissioner that, due to certain hardship conditions, taxpayer is unable to pay the full amount of the tax due. Such authorization shall not be granted until the proper returns are filed by the taxpayer for all amounts owed by taxpayer under this Chapter.
(c) Estimation of Tax by Tax Commissioner:
(1) In any case where a taxpayer has failed to file a return or has filed a return which does not show the proper amount of tax due, or whenever the Tax Commissioner has been unable to secure information from the taxpayer as to his taxable income for any year, the Tax Commissioner may determine the amount of tax appearing to be due the Municipality and assess the taxpayer upon the basis of such determination, together with interest and penalties as prescribed in Section 181.10 of this Chapter.
(2) Such determination of tax may be adjusted upon submission by the taxpayer of actual records from which his tax may be computed.
(d) Compromise Authority:
(1) Subject to the consent of a majority of the Board of Review, the Tax Commissioner shall have the power to compromise any liability imposed by this Chapter.
(2) Upon the demonstration and documentation of good cause, the Tax Commissioner shall have the power to compromise any assessments of penalty and interest liabilities imposed by this Chapter, consistent with this Chapter and the Rules and Regulations.
(Ord. 58-2012. Passed 12-6-12.)
(a) Investigations by Tax Commissioner:
(1) The Commissioner, or any duly authorized Deputy or Agent, is authorized to examine the books, papers, records and federal income tax returns of any employer, taxpayer or any person subject to this Chapter, or whom the Tax Commissioner believes is subject to the provisions of this Chapter, for the purpose of verifying the accuracy of any return made; or, if no return was made, to ascertain the tax due or withholdings due under this Chapter.
(2) An employer or supposed employer, taxpayer or supposed taxpayer is directed and required to furnish, within ten (10) days following a written request by the Tax Commissioner, or duly authorized agent or employee, the means, facilities and opportunity for making examinations and investigations as authorized by this Chapter.
(b) Subpoena of Records and Persons:
(1) The Tax Commissioner, or any duly authorized Deputy or Agent, is authorized to examine any person, under oath, concerning any income which was, or should have been, returned for taxation, or any transaction tending to affect such income. The Tax Commissioner may compel the production of books, papers and records and the attendance of all persons whether as parties or witnesses, whenever the Tax Commissioner believes such persons have knowledge of the facts concerning any supposed income or supposed transaction of the taxpayer.
(2) The Tax Commissioner's order to examine any document mentioned in the preceding paragraph shall state whether the examination is to be at the office of the taxpayer or at the office of the Tax Commissioner.
(3) The Tax Commissioner may order the appearance to the Tax Department Office, or duly authorized Deputy or Agent, of any party who is believed to have any knowledge of a taxpayer's income or withholdings, or any information pertaining to the taxpayer under investigation, whether or not the individual so ordered has actual custody of the records of the taxpayer being investigated. The Tax Commissioner is specifically authorized to order the appearance of the local manager or representative of any taxpayer.
(4) Persons required to attend any hearings shall be notified not less than ten (10) days prior to the time of hearing. The notice shall indicate the time and place of the hearing and what books, papers or records the witness is to make available at such hearing.
(5) The notice shall be served by the Tax Commissioner, or duly authorized agent, by delivering it to the person named personally, or by leaving the notice at the persons usual place of business or residence, or by mailing it to the person by registered mail, return receipt requested, addressed to the persons usual place of business or residence.
(c) Penalty for Non-Compliance:
(1) The failure or refusal by any employer, supposed employer, taxpayer, or supposed taxpayer to produce books, papers, records or federal income tax returns, or the refusal to submit to such examination by any employer or person subject, or presumed to be subject, to the tax or by any officer, agent or employee of a person subject to the tax or required to withhold tax, or the failure of any person to comply with the provisions of this Section, or with an order or subpoena of the Tax Commissioner, shall be deemed a violation of this Chapter and punishable as provided in Section 181.12 of this Chapter.
(d) Retention of Records:
(1) All employers and taxpayers shall retain all records necessary to compute accurate tax liability or as will enable the filing of true and accurate returns whether of taxes withheld at the source or of taxes payable upon earnings or net profits, or both. Such records shall be preserved for a period of not less than six (6) years from the date a return is filed or the taxes required to be withheld are paid.
(e) Confidential Nature of Examinations:
(1) Any information gained as a result of any returns, investigations, verifications or hearings before the Tax Commissioner or the Board, required by this Chapter or authorized by the Rules and Regulations shall be confidential and no person shall disclosure such information except for official purposes, or as ordered by a court of competent jurisdiction, or in connection with the performance of that person's official duties, or the official business of the municipal corporation as authorized by this Chapter
(2) The Tax Commissioner of the municipal corporation may furnish copies of returns filed under this Chapter to the Internal Revenue Service and to the State Tax Commissioner when required.
(3) Any person divulging such information shall be guilty of a misdemeanor punishable by a maximum fine of five hundred ($500.00) dollars or imprisonment for not more than six (6) months, or both.
(4) In addition to the above penalty, any employee of the Municipality who violates the provisions of this Section relative to the disclosure of confidential information shall be guilty of an offense punishable by immediate dismissal.
(Ord. 58-2012. Passed 12-6-12.)
(a) Interest: All taxes imposed and monies withheld or required to be withheld by employers under the provisions of this Chapter and remaining unpaid five (5) days after they become due shall bear interest at the rate of one (1%) per month or fraction thereof, in addition to the amount of the unpaid tax or withholdings.
(b) Penalties: In addition to interest as provided in sub-section A above, penalties for failure to pay taxes and to withhold and remit taxes are imposed as follows based on the tax remaining unpaid after it becomes due:
(1) In the case of a taxpayer's failure to pay taxes due, other than taxes withheld, one and one-half percent (1½%) per month or fraction thereof, or fifty dollars ($50.00), whichever is greater. Except in the case of fraud, the penalty for failure to pay taxes due shall not exceed fifty percent (50%) of the unpaid tax.
(2) In the case of employers who fail to withhold and remit taxes withheld or required to be withheld from employees, three percent (3%) per month or fraction thereof, or fifty dollars ($50.00), whichever is greater. Except in the case of fraud, the penalty for failure to remit taxes withheld or required to be withheld shall not exceed fifty percent (50%) of the unpaid tax.
(3) In the case of a taxpayer's failure to file a return by the due date or by the date resulting from extension, fifty dollars ($50.00).
(4) Where the taxpayer has failed to do any of the following:
A. Failed to file a declaration on which taxpayer has estimated and paid a tax equal to or greater than the tax paid for the previous year; or
B. Where taxpayer has filed a previous return and has failed to file a declaration on which taxpayer has estimated and paid a tax equal to or greater than ninety percent (90%) of the actual tax for the year; or
C. Where taxpayer has failed to file a return and has failed to pay the total tax on or before the end of the month following the end of the taxable year; a penalty is imposed in the amount ten percent (10%) of the difference between ninety percent (90%) of the actual tax for the year and the amount paid prior to the end of the month following the close of the tax year through withholding and declaration.
(5) No penalty or interest shall be charged against a taxpayer for the late payment or nonpayment of estimated tax liability if the taxpayer is an individual who resides in the municipal corporation but was not domiciled there on the first day of January of the current calendar year.
(6) The percentages specified in this Section, when used, shall apply from the first month of delinquency.
(c) Exceptions:
(1) No penalty shall be assessed on additional taxes found on audit to be due when a return was timely filed in good faith and the tax paid within the prescribed time.
(2) In the absence of fraud, neither penalty nor interest shall be assessed on any additional taxes resulting from a federal audit for federal income tax purposes provided an amended return is filed and the additional tax paid within three (3) months after final determination of the federal tax liability.
(3) A taxpayer or employer shall have thirty (30) days after receipt of notice of the imposition of interest and penalties within which to file a written protest or explanation with the Tax Commissioner. If no protest or explanation is filed within the prescribed time, the imposition of interest and penalties shall become and be the final assessment.
(d) Computed penalties of less than five dollars ($5.00) for a first violation shall not be assessed. However, notification to the taxpayer of a first time violation will be made.
(e) Upon recommendation of the Tax Commissioner, the Board of Review may abate penalty or interest, or both, or upon an appeal from the refusal of the Tax Commissioner to recommend abatement of penalty and interest concerning an item of income or expense, the Board may nevertheless abate penalty or interest, or both.
(Ord. 58-2012. Passed 12-6-12.)
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